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Application and Development of a Fuzzy Analytic Hierarchy Process within a Capital Investment Study

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  • Yu-Cheng Tang

    (Department of Accounting, National Changhua University of Education, Taiwan)

  • Malcolm J. Beynon

    (Accounting and Finance Section, Cardiff Business School, University of Wales Cardiff)

Abstract

Capital budgeting as a decision process is among the most important of all management decisions. The importance (consequents) of the subsequent outcome may bring a level of uncertainty to the judgement-making process by the decision maker(s) in the form of doubt, hesitancy, and procrastination. This study considers one such problem, namely the selection of the type of fleet car to be adopted by a small car rental company, a selection that accounts for a large proportion of the company¡¦s working capital. With a number of criteria to consider, a fuzzy analytic hierarchy process (FAHP) analysis is undertaken to accommodate the inherent uncertainty. Developments are made to the FAHP method utilised to consider the preference results with differing levels of precision in the pairwise judgements made.

Suggested Citation

  • Yu-Cheng Tang & Malcolm J. Beynon, 2005. "Application and Development of a Fuzzy Analytic Hierarchy Process within a Capital Investment Study," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 1(2), pages 207-230, July.
    • Handle: RePEc:jec:journl:v:1:y:2005:i:2:p:207-230
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    References listed on IDEAS

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    2. Vatankhah, Sanaz & Bamshad, Vahideh & Altinay, Levent & De Vita, Glauco, 2023. "Understanding business model development through the lens of complexity theory: Enablers and barriers," Journal of Business Research, Elsevier, vol. 155(PA).
    3. Behrooz Noori, 2015. "Prioritizing strategic business units in the face of innovation performance: Combining fuzzy AHP and BSC," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 3(1), pages 36-56, February.
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    5. Chia-Nan Wang & Van Thanh Nguyen & Hoang Tuyet Nhi Thai & Duy Hung Duong, 2018. "Multi-Criteria Decision Making (MCDM) Approaches for Solar Power Plant Location Selection in Viet Nam," Energies, MDPI, vol. 11(6), pages 1-27, June.
    6. Behrooz Noori, 2014. "Prioritizing strategic business units in the face of innovation performance: Combining fuzzy AHP and BSC," Proceedings of International Academic Conferences 0802059, International Institute of Social and Economic Sciences.

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